Royal Bank of Canada filed a free writing prospectus on October 30, 2026, disclosing terms for Market Linked Notes tied to the Dow Jones Industrial Average, with a stated maturity date of August 29, 2029 and a principal amount of $1,000 per note.

Key Highlights

  • Principal protection: If the ending value of the Dow Jones Industrial Average is less than or equal to the starting value at maturity, investors receive $1,000 per note, according to the filing.
  • Maximum return: The filing states the maximum return will be at least 20.00% of the principal amount per note, to be determined on the pricing date of November 24, 2026.
  • Upside participation rate: The notes carry a 100% upside participation rate, capped at the maximum return, as disclosed in the term sheet.
  • Initial estimated value: The filing discloses the initial estimated value is expected to be between $909.50 and $959.50 per note, which will be less than the original offering price of $1,000.
  • Agent discount: The filing states dealers may receive a selling concession of up to 2.00%, WFA may receive a distribution expense fee of 0.075%, and selected dealers may receive a fee of up to 0.20% for marketing and other services, with total agent discount up to 3.075%.
  • CUSIP: The notes are identified by CUSIP 78018DP76, with denominations of $1,000 and any integral multiple of $1,000.

Royal Bank of Canada's DJIA Market Linked Notes: Key Structural Terms

According to the term sheet dated October 30, 2026, Royal Bank of Canada is offering Market Linked Notes linked to the Dow Jones Industrial Average with an issue date of November 30, 2026 and a calculation day of August 24, 2029. The starting value will be set as the closing value of the Index on the pricing date of November 24, 2026, and the ending value will be the closing value on the calculation day. The notes do not pay interest during their term, as disclosed in the filing.

The filing describes the maturity payment as follows: if the ending value exceeds the starting value, investors receive $1,000 plus the lesser of (i) $1,000 multiplied by the index return and the upside participation rate, or (ii) the maximum return. If the ending value is less than or equal to the starting value, investors receive $1,000. The filing notes that "all payments on the notes are subject to our credit risk." RBC Capital Markets, LLC, identified as an affiliate of the issuer, will act as calculation agent.

The filing cautions that the initial estimated value will be less than the original offering price, and lists several risk categories including risks relating to the structure of the notes, secondary market liquidity, conflicts of interest, and risks specific to the Index. The filing states the notes "have complex features" and that investing involves "risks not associated with an investment in conventional debt securities." The filing also notes that the notes are "not a bank deposit and not insured or guaranteed by the FDIC or any other governmental agency." The filing references a preliminary pricing supplement filed separately with the SEC for additional detail.

What Was Disclosed

Royal Bank of Canada disclosed the introductory term sheet for Market Linked Notes tied to the Dow Jones Industrial Average, due August 29, 2029, including the principal protection feature, a maximum return of at least 20.00%, a 100% upside participation rate, and an initial estimated value between $909.50 and $959.50 per note.